SHAZAM launches Pentagon
The SHAZAM network, one of the last remaining member-owned and controlled EFT networks and processors, founded in 1976, is implementing Pentagon, a mobile payments application developed by payment authentication company Adaptive Payments. The Pentagon mobile point-of-sale (POS) payments application will allow retailers to take PIN debit, signature debit and credit payments using iOS and Android mobile phone and tablet devices. The application will be rolled out to SHAZAM’s 1500 or so community financial institutions and their respective merchant customer bases.
The Pentagon mobile payments platform runs off Adaptive Payments’ 5Dsecure five factor-dual channel authentication technology to verify PIN debit transactions. Adaptive Payments claims the Pentagon solution is the first and only solution to use the consumer’s phone for PIN capture using outside of band authentication technology. The process works by capturing the PIN in a second channel, never storing it virtually with the cardholder’s data or personal information.
Other than accepting PIN debit, Pentagon uses 3DES to encrypt the magnetic stripe at the read head. The transaction produces a Regulation E-compliant receipt which is sent to consumers as an SMS text message. An image of the signed receipt is also captured and stored.
Adaptive Payments is currently offering a 1% discount on all PIN debit transactions to merchants using Pentagon. SHAZAM president and CEO Mike Hollinger observes that “consumers expect to be able to shop any time and at any place. There is also an expectation to be able to shop safely and securely without fear of fraud or identity theft.” He claims that, by implementing the Pentagon mobile payment application, “merchants of all types and sizes will be able to quickly, cost-effectively and securely accept electronic payments anytime, anywhere using their mobile phones.”
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